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What percent of health insurance do employers typically pay?

David Bulow's Profile

Does anyone have stats on what percentage of health benefit cost is shared by the company vs. the employee for mid size companies (250-500 employees)?  It would be helpful to know the break down by Employee only, Employee and spouse, Employee and family).



Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

A great resource I have seen is a survey that comes out annually from the Kaiser Foundation -

David Bulow
Title: Controller
Company: Dinan
(Controller, Dinan) |

Thanks, great information.

Robert Wright
Title: President
Company: Fenway Financial Consultants
LinkedIn Profile
(President, Fenway Financial Consultants) |

Thanks Regis for posting this resource. Very useful and informative.

Dabney Wellford
Title: CFO
Company: Wellford Consulting
(CFO, Wellford Consulting) |


The Affordable Care Act requires that the employer pay for 50% of the employee only premium. Further, the amount that the employee pays can not exceed 9.5% of his gross income.

Several schools of thought - what you really want to do for your employees to limit turnover, what others (competitors) in your industry are doing, what you can afford, what other employers in your area are doing to attract good employees, etc.

I have seen employers your size pay for 75% to 80% of the premium, even for dependents because that is "what they have always done and what is right - and some stupid law is not going to make me change."

Obamacare has only added to the confusion in the landscape. Keep in mind that there are options out there where you can raise the deductible and insert another product to cover the deductible difference, saving quite a bit of money on your plan. Email me at cdwellfordataol [dot] com and I will explain.

Dabney Wellford

Rebecca Heyman
Title: Director
Company: Zuman
(Director, Zuman) |

Comparable companies typically pay 90 to 100% of the employee premium, and an average of 67% of the costs for dependents. In some cases, this is based on a benchmark, as in "I pay 100% of employee and 75% of dependent costs of the Kaiser HMO, and employees pay the difference for dependents or if they select a richer plan." I've consulted with dozens of companies at this size, all in a 'white-collar' environment; primarily high-tech, financial services, and professional service firms with Northern California HQ's and this has been the consistent approach. In highly-competitive situations, companies pay the full 100% of all premiums.

(Agent, JKS Solutions, Inc.) |

My understanding was that the 50% requirement was only if the company wanted to receive the tax credit offered through Obamacare, but perhaps that is in smaller companies. I did not read up on companies larger than our needs covered.

Dabney Wellford
Title: CFO
Company: Wellford Consulting
(CFO, Wellford Consulting) |


The 50% requirement is if you are going to offer health coverage. along with the requirement that the employee cost not exceed 9.5%, regardless of size.

How big is your company?

Anonymous User
Title: CFO
Company: Local Government Agency
(CFO, Local Government Agency) |

Many public agencies continue to pay 100%. It is an unsustainable endeavor.

Check on any of the various cities that have declared bankruptcy. Although crushing defined benefit plan costs are blamed. You will find their health care benefits, both during and PERB, to be part of the issue as well.

But, public employees and especially, public employee unions, will not hear of any change. Ask me how I know.


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